Question: On January 1 , 2 0 2 4 , Marco Corporation acquired all of the outstanding stock of Polo Corporation in a Type A statutory

On January

1, 2024,

Marco Corporation acquired all of the outstanding stock of Polo Corporation in a Type A statutory merger and the two corporations were combined into a single entity. Immediately before the merger, Marco had positive accumulated earnings and profits in the amount of $

130, 000

and Polo had an accumulated earnings and profits deficit of $

60, 000 .

.

During the year ended December

31, 2024,

the combined entity had current earnings and profits in the amount of $

45, 000

and it made no distributions. Compute the corporation

s earnings and profits balance

(

)

as of December

31, 2024 .

.

During the year ended December

31, 2025,

the corporation had current earnings and profits of $

70, 000

and it distributed $

100, 000

in cash to its shareholders. Compute the corporation

s earnings and profits balance

(

)

as of December

31, 2025 .

.

During the year ended December

31, 2026,

the combined entity had current earnings and profits in the amount of $

20, 000

and it made no distributions. Compute the corporation

s earnings and profits balance

(

)

as of December

31, 2026 .

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